The strategy of the direct-connected device (D2D) related to Amazon Leo has been advanced, as the Federal Communications Commission of the United States (FCC) has approved its transaction to acquire Globalstar for $11.5 billion.
On October 27th, FCC approved the $11.5 billion acquisition of Globalstar by Amazon Leo. Amazon is entering the direct-connected devices business by taking over Globalstar's D2D constellation as well as its agreement with Apple.
Amazon Leo's larger goals include plans to launch a new generation of D2D platform in 2028, which will support "advanced" voice, text messaging, and data services. FCC is reviewing an application from Amazon Leo to build a D2D system with over 5,105 satellites.
The previous partner of Globalstar, Yippy, attempted to block this transaction on the grounds of a so-called contract dispute, but Globalstar claimed that they had not provided communication services to Yippy for many years and accused Yippy of using the merger review process to exert pressure over another unrelated dispute. FCC supported Globalstar in the ruling of that day and dismissed Yippy's petition.
Amazon Leo will acquire Globalstar's existing satellite operations, infrastructure, and assets, including its MSS (mobile satellite services) spectrum licenses. Globalstar operates about a dozen near-Earth orbit LEO satellites, focusing on services for its collaboration with Apple's D2D, and serves over 780,000 terminal devices in more than 120 countries.
Before the advancement of the Amazon Leo transaction, Globalstar has been developing a new “C-3” low Earth orbit platform, which is planned to consist of 48 satellites in operation and 6 backup satellites in orbit. When approving the transaction, FCC noted that the space agency had recently approved Globalstar's application to enter the American market to carry out C-3 services, and permitted this operator to use the frequency band from 1610MHz to 1618.725MHz for MSS links from Earth to space, as well as the frequency band from 2483.5MHz to 2500MHz for service links from space to Earth.
FCC indicates that: 'After the transaction with Globalstar is completed, Amazon Leo may use the C-3 system permission to build and launch this newly authorized system.'
The Globalstar transactions, along with the even greater LEO ambitions of Amazon Leo, are intensifying competition in the D2D sector. This sector also includes recognized industry leaders SpaceX / Starlink, as well as AST SpaceMobile and Elveo (formed by the merger of Lynk and Omnispace). AT &T, T-Mobile, and Verizon are also advancing a D2D joint venture, which is seen as a form of hedge against SpaceX.
Although Yippy attempted to prevent this transaction, there were also other parties that expressed their support, including Public Knowledge, New America's Open Technology Institute, as well as Information Technology and Innovation Foundation. These groups believe that the assets of Globalstar will help Amazon Leo become a more formidable competitor in the D2D market.
FCC also believes that this transaction will promote more competition. The committee stated: "In particular, this transaction will drive Amazon into D2D services and create a strong, satellite-based operator capable of providing fixed and mobile services to residential and business customers."
